On September 1, Dayne Ltd. purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Dayne Ltd. uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as accounts payable from this purchase?Select one:$9,405.$9,700. $9,500.$9,605.

Given that Dayne Ltd. purchased $9,500 of inventory items on credit

Answered: On September 1, Dayne Ltd. purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On September 1, Dayne Ltd. purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Dayne Ltd. uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as accounts payable from this purchase?

Select one:

$9,405.
$9,700.
$9,500.
$9,605.

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